Wednesday, October 26, 2011

Paypal 21-days hold policy.. sucks!

I just finished selling few of my listings in ebay, yesterday I managed to ship them all, mostly to US. And I was quite shocked to realize how much the shipping price from Malaysia to US increased in these few months. The registered shipping alone is ranging MYR31-33, which means my allocated shipping cost to "everywhere else is USD12.00" is irrelevant anymore! Not that I made profit from shipping, it is impossible to do with all the things needed to prepare for proper shipping.

The sad thing is paypal just implemented a 21-days hold policy for each payment that I, as a seller in this case, received. I guess this is new, this is my second time selling in 2011, the first one didn't have this kind of policy.

Just a brief reasons why this policy exist (from paypal website):

Why does PayPal hold payments?

Holding funds in a pending balance for a specified amount of time is a common practice in the payments industry. Delaying access to funds helps ensure that sellers have sufficient funds in their account to cover claims or refunds.

Read more at paypal website.

My guess is there must be several  (maybe thousands!) issues regarding refunds or claims from buyers to unethical sellers.

My opinion: The significance 21-days hold policy by paypal towards buyer is inevitable. But transactions in ebay requires great deal of communication between both parties! It is unethical for sellers to list something that it is not, and buyers must have considerable efforts to dig the truth! So, this 21-day policy is a piece of shit policy, resulting from irresponsible buyers and sellers.

And now, how about a seller who sells to buy? Any consideration paypal?